Act on Strengthening the Management of Small and Medium-Sized Enterprises, etc.

In light of the importance of the role that the diverse and vigorous growth and development of small and medium-sized enterprises, etc. play in revitalizing the economy, the purpose of this Act is to strengthen the management of small and medium-sized enterprises, etc., and thereby to contribute to the sound development of the national economy, by supporting the business activities of newly established enterprises and the management innovation, management capacity improvement, advanced equipment introduction and business continuity enhancement of small and medium-sized enterprises, etc.

①In this Act, "small and medium-sized enterprise" means a person that falls under any of the following items.

②In this Act, "small and medium-sized enterprise, etc." means a person that falls under any of the following items.

③In this Act, "new small and medium-sized enterprise" means a small and medium-sized enterprise that falls under any of the following items.

④In this Act, "new small and medium-sized enterprise, etc." means a person that falls under any of the following items.

⑤In this Act, "specified business operator" means a person that falls under any of the following items.

⑥In this Act, "specified business operator, etc." means a person that falls under any of the following items.

⑦In this Act, "new business activities" means the development or production of new goods, the development or provision of new services, the introduction of a new method of producing or selling goods, the introduction of a new method of providing services, research and development concerning technology and the utilization of its results, and other new business activities.

⑧In this Act, "developing new business fields using outside highly skilled personnel" means that a new small and medium-sized enterprise, etc. receives investment and guidance from a person that falls under the requirements specified by Order of the Ministry of Economy, Trade and Industry as a person whose business is to make investment in, and provide guidance to, new small and medium-sized enterprises, etc. concerning new business activities, and, by utilizing outside highly skilled personnel (meaning a person other than the officers, employees and other workers of that new small and medium-sized enterprise, etc., who falls under the requirements specified by Order of the Ministry of Economy, Trade and Industry as a person having advanced knowledge or skills useful for new business activities; the same applies hereinafter), carries on new business activities, thereby seeking to develop a new business field.

⑨In this Act, "management innovation" means that a business operator carries on new business activities, thereby seeking to improve its management to a considerable degree.

⑩In this Act, "management capacity improvement" means that a business operator carries on business activities by introducing a method, such as the development of personnel having knowledge or skills useful for business activities, the utilization of the results of an analysis of financial position, the utilization of information concerning trends in demand for goods or services, or the construction of an information system to improve management efficiency, that makes advanced use of the management resources it currently has (meaning equipment, technology, individuals' knowledge and skills, and other resources utilized in business activities; the same applies hereinafter) or of management resources acquired from, or provided by, another business operator through any of the following measures (hereinafter referred to as "business succession, etc."), thereby strengthening its management capacity and seeking to improve its management.

⑪In this Act, "succeeding specified business operator, etc." means a specified business operator, etc. in the case where it carries out business succession, etc. (limited to the measures listed in items (i) through (iv) of the preceding paragraph and, among the measures listed in item (vii) of that paragraph, those relating to the acquisition of a business; the same applies in the following paragraph, Article 17, paragraph (4), item (i), Article 18, paragraph (3), and Article 27, paragraphs (1) and (2)).

⑫In this Act, "transferring specified business operator, etc." means, in the case where a succeeding specified business operator, etc. carries out business succession, etc. with another specified business operator, etc., that other specified business operator, etc.

⑬In this Act, "business restructuring investment" means an investment business conducted by an investment limited partnership (meaning an investment limited partnership prescribed in Article 2, paragraph (2) of the Limited Partnership Act for Investment (Act No. 90 of 1998); the same applies in Article 20, paragraph (1) and Article 21, paragraph (1)) toward specified business operators, etc. (limited to one that falls under the requirements specified by Order of the Ministry of Economy, Trade and Industry, such as that it is directed mainly at specified business operators, etc. seeking management capacity improvement (limited to that carrying out business succession, etc.)), which is specified by Order of the Ministry of Economy, Trade and Industry as one that is expected to be certain to be accompanied by guidance to those specified business operators, etc. concerning methods of making advanced use of management resources.

⑭In this Act, "advanced equipment, etc." means facilities, equipment, machinery, apparatus or programs that utilize technology enabling the processing of a large volume of information compared with conventional processing, or other advanced technology, and that are specified by Order of the Ministry of Economy, Trade and Industry as indispensable for the prompt introduction of which to improve the productivity of small and medium-sized enterprises.

⑮In this Act, "business continuity enhancement" means, in light of the impact that the occurrence of a natural disaster or a serious failure in the foundations of business activities, such as communications (hereinafter referred to as a "natural disaster, etc."), has on business activities, that a business operator takes in advance measures that contribute to reducing that impact on business activities and to continuing business activities, such as determining response procedures for when a natural disaster, etc. occurs, introducing equipment that contributes to reducing that impact, concluding a non-life insurance contract, and cooperating and collaborating with related parties, and, together with that, makes efforts to ensure the effectiveness of those measures, such as developing the necessary organization and conducting drills, thereby seeking to strengthen its ability to continue business activities when a natural disaster, etc. occurs.

①The competent ministers must establish a basic policy on strengthening the management of small and medium-sized enterprises, etc. (hereinafter referred to as the "basic policy").

②The basic policy is to specify the following:

③When the competent ministers intend to establish or change the basic policy, they must in advance consult with the heads of the relevant administrative organs and hear the opinions of the Small and Medium-sized Enterprise Policy Council and the Industrial Structure Council; provided, however, that this does not apply to a minor change specified by order of the competent ministry.

④Upon establishing or revising the basic policy, the competent ministers must publicize it without delay.

①In addition to the businesses listed in the items of Article 5, paragraph (1) of the Small and Medium-sized Enterprise Investment Business Corporation Act (Act No. 101 of 1963), a Small and Medium Business Investment and Consultation Company may conduct the following businesses:

②The businesses listed in the items of the preceding paragraph are deemed to be the businesses referred to in Article 5, paragraph (1), items (i) and (ii) of the Small and Medium-sized Enterprise Investment Business Corporation Act for the purpose of the application of that Act.

The Minister of Economy, Trade and Industry is to provide diagnosis and guidance, concerning the provision of information on management conditions necessary for the smooth implementation of fund-raising through investment, to a company that is a new small and medium-sized enterprise and that satisfies the requirements specified by Order of the Ministry of Economy, Trade and Industry as one for which it is particularly necessary and appropriate, in order to achieve the future growth and development of its business, to actively receive investment from outside and carry on business activities (referred to in the following Article as a "specified new small and medium-sized enterprise").

Where an individual has acquired, by payment, shares issued by a specified new small and medium-sized enterprise (limited to the case where the individual has obtained confirmation from the Minister of Economy, Trade and Industry, in accordance with Order of the Ministry of Economy, Trade and Industry, concerning the acquisition of the shares), and a transfer loss, etc. arises on those shares, special provisions on taxation, such as the carrying forward of deductions, are to apply to the transfer loss, etc. as provided by the Act on Special Measures Concerning Taxation (Act No. 26 of 1957).

①A new small and medium-sized enterprise, etc. that intends to develop new business fields using outside highly skilled personnel may prepare a plan concerning developing new business fields using outside highly skilled personnel (hereinafter in this Article and the following Article referred to as a "plan for developing new business fields using outside highly skilled personnel"), submit it to the competent minister in accordance with order of the competent ministry, and obtain certification that the plan for developing new business fields using outside highly skilled personnel is appropriate.

②The following matters must be stated in a plan for developing new business fields using outside highly skilled personnel.

③Where an application for the certification under paragraph (1) is filed, the competent minister is to grant the certification if the minister finds that the plan for developing new business fields using outside highly skilled personnel pertaining to the application conforms to all of the following items.

①A new small and medium-sized enterprise, etc. that has obtained the certification under paragraph (1) of the preceding Article (referred to in Articles 12 and 13 as a "certified new small and medium-sized enterprise, etc.") must, when intending to change the plan for developing new business fields using outside highly skilled personnel pertaining to that certification, obtain certification from the competent minister in accordance with order of the competent ministry.

②If the competent minister finds that the business pertaining to developing new business fields using outside highly skilled personnel is not being carried out in accordance with the plan for developing new business fields using outside highly skilled personnel pertaining to the certification under paragraph (1) of the preceding Article (where certification of a change has been granted under the preceding paragraph, the plan as changed; hereinafter referred to as a "certified plan for developing new business fields using outside highly skilled personnel"), the minister may rescind that certification.

③The provisions of paragraph (3) of the preceding Article apply mutatis mutandis to the certification under paragraph (1).

②With regard to the application of Article 3-7, paragraphs (1) and (2) of the Small and Medium-sized Enterprise Credit Insurance Act to an insurance relation of overseas investment insurance prescribed in Article 3-7, paragraph (1) of that Act (hereinafter referred to as "overseas investment insurance") that pertains to a small and medium-sized enterprise that has received a guarantee related to developing new business fields using outside highly skilled personnel, the phrase "200 million yen" in paragraph (1) of that Article is deemed to be replaced with "300 million yen (200 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than funds necessary for a certified project for developing new business fields using outside highly skilled personnel prescribed in Article 10, paragraph (1) of the Act on Strengthening the Management of Small and Medium-Sized Enterprises, etc. (hereinafter referred to as "funds for a project for developing new business fields using outside highly skilled personnel"))", the phrase "400 million yen" is deemed to be replaced with "600 million yen (400 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than funds for a project for developing new business fields using outside highly skilled personnel)", and the phrase "200 million yen" in paragraph (2) of that Article is deemed to be replaced with "300 million yen (200 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than funds for a project for developing new business fields using outside highly skilled personnel)".

③With regard to the application of Article 3-8, paragraphs (1) and (2) of the Small and Medium-sized Enterprise Credit Insurance Act to an insurance relation of new business development insurance prescribed in Article 3-8, paragraph (1) of that Act (hereinafter referred to as "new business development insurance") that pertains to a small and medium-sized enterprise that has received a guarantee related to developing new business fields using outside highly skilled personnel, the phrase "200 million yen" in paragraph (1) of that Article is deemed to be replaced with "300 million yen (200 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than funds necessary for a certified project for developing new business fields using outside highly skilled personnel prescribed in Article 10, paragraph (1) of the Act on Strengthening the Management of Small and Medium-Sized Enterprises, etc. (hereinafter referred to as "funds for a project for developing new business fields using outside highly skilled personnel"))", the phrase "400 million yen" is deemed to be replaced with "600 million yen (400 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than funds for a project for developing new business fields using outside highly skilled personnel)", and the phrase "200 million yen" in paragraph (2) of that Article is deemed to be replaced with "300 million yen (200 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than funds for a project for developing new business fields using outside highly skilled personnel)".

④With regard to the application of Article 3, paragraph (2) and Article 5 of the Small and Medium-sized Enterprise Credit Insurance Act to an insurance relation of ordinary insurance that pertains to a guarantee related to developing new business fields using outside highly skilled personnel, the phrase "70 percent" in that paragraph, and the phrase "70 percent (80 percent in the case of unsecured insurance, special small-amount insurance, current asset collateral insurance, pollution prevention insurance, energy measures insurance, overseas investment insurance, new business development insurance, business revitalization insurance and specified bond insurance)" in that Article, are deemed to be replaced with "80 percent".

⑤The amount of the premium for an insurance relation of ordinary insurance, unsecured insurance or special small-amount insurance that pertains to a guarantee related to developing new business fields using outside highly skilled personnel is, notwithstanding Article 4 of the Small and Medium-sized Enterprise Credit Insurance Act, the amount obtained by multiplying the insured amount by the rate specified by Cabinet Order within 2 percent per year.

①A Small and Medium Business Investment and Consultation Company may, in addition to the business listed in the items of Article 5, paragraph (1) of the Small and Medium-sized Enterprise Investment Business Corporation Act, conduct the following business.

②The businesses listed in the items of the preceding paragraph are deemed to be the businesses referred to in Article 5, paragraph (1), items (i) and (ii) of the Small and Medium-sized Enterprise Investment Business Corporation Act for the purpose of the application of that Act.

The Organization for Small and Medium Enterprises and Regional Innovation, JAPAN (hereinafter referred to as the "Organization for Small and Medium Enterprises and Regional Innovation, JAPAN"), in order to promote developing new business fields using outside highly skilled personnel, conducts the business of guaranteeing obligations pertaining to borrowings of funds that a certified new small and medium-sized enterprise, etc. requires in order to carry out a certified project for developing new business fields using outside highly skilled personnel, and of guaranteeing obligations pertaining to corporate bonds (excluding short-term corporate bonds prescribed in Article 66, item (i) of the Act on Book-Entry Transfer of Corporate Bonds and Shares (Act No. 75 of 2001); the same applies in Article 25, paragraph (1)) issued by a certified new small and medium-sized enterprise, etc. (limited to a company) in order to raise those funds.

Where outside highly skilled personnel engaged in developing new business fields using outside highly skilled personnel carried out in accordance with a certified plan for developing new business fields using outside highly skilled personnel acquire shares of the certified new small and medium-sized enterprise, etc. that carries out that developing new business fields using outside highly skilled personnel (limited to a company that falls under the requirements specified by order of the competent ministry with respect to the amount of stated capital and other matters) through the exercise of share options granted by it in accordance with that plan, a special measure concerning taxation is to apply to the economic benefit pertaining to the acquisition of those shares, as provided by the Act on Special Measures Concerning Taxation (Act No. 26 of 1957).

①A specified business operator may prepare a plan concerning management innovation that it intends to carry out alone or jointly (including, where a specified business operator intends to establish an association, federation or company listed in Article 2, paragraph (5), items (v) through (vii), a plan concerning management innovation that the specified business operator carries out jointly with that association, federation or company; where a specified business operator intends to establish a company by merger, a plan concerning management innovation carried out by the company established by the merger (including the company surviving after the merger); and, where a specified business operator intends to carry out management innovation jointly with all or part of its foreign affiliated corporation, etc. (meaning a corporation or other foreign organization established in accordance with the laws and regulations of a foreign state (including one to be newly established) that has a relationship specified by Order of the Ministry of Economy, Trade and Industry as one in which the specified business operator is recognized as substantially controlling its management; the same applies hereinafter in this Chapter), a plan concerning management innovation that the specified business operator carries out jointly with that foreign affiliated corporation, etc.; hereinafter referred to as a "management innovation plan"), submit it to the administrative agency as provided by Order of the Ministry of Economy, Trade and Industry, and obtain approval to the effect that the management innovation plan is appropriate; provided, however, that where specified business operators have prepared a management innovation plan jointly, they are to designate a representative and submit it to the administrative agency, as provided by Order of the Ministry of Economy, Trade and Industry.

②A management innovation plan must state the following matters:

③When an application for the approval under paragraph (1) is filed, the administrative agency is to grant the approval if it finds that the management innovation plan pertaining to the application conforms to all of the following items:

①A specified business operator that has obtained the approval under paragraph (1) of the preceding Article, when it intends to change the management innovation plan pertaining to that approval, must obtain the approval of the administrative agency that granted the approval, as provided by Order of the Ministry of Economy, Trade and Industry.

②When the administrative agency finds that a business for management innovation is not being carried out in accordance with the management innovation plan pertaining to the approval under paragraph (1) of the preceding Article (where approval of a change has been given under the provisions of the preceding paragraph, the plan as changed; hereinafter referred to as the "approved management innovation plan"), it may rescind that approval.

③The provisions of paragraph (3) of the preceding Article apply mutatis mutandis to the approval under paragraph (1).

①The competent ministers may, based on the basic policy, designate, from among the business fields under their jurisdiction, a business field in which management capacity improvement of specified business operators, etc. is found to be especially necessary, and establish guidelines concerning management capacity improvement in that business field (hereinafter referred to as "business-field guidelines").

②The business-field guidelines are to specify, with regard to the matters listed in Article 3, paragraph (2), item (ii), sub-items (b) and (c)(4) through (6), the method of introducing methods of making advanced use of management resources in that business field and other matters necessary for management capacity improvement in that business field.

③When the competent ministers find it necessary in light of changes in the environment surrounding business operators and other circumstances, they are to change the business-field guidelines.

④When the competent ministers intend to establish or change the business-field guidelines, they are to hear in advance the opinions of experts on the business field concerned and other persons concerned; provided, however, that this does not apply to a minor change specified by order of the competent ministry.

⑤Upon establishing or changing the business-field guidelines, the competent ministers must publicize them without delay.

①A specified business operator, etc. may prepare a plan concerning management capacity improvement that it intends to carry out alone or jointly (including, where a specified business operator, etc. intends to establish an association, federation or company listed in Article 2, paragraph (5), items (v) through (vii), or a corporation specified by Cabinet Order in Article 2, paragraph (6), item (ii) (hereinafter simply referred to as a "corporation" in this paragraph), a plan concerning management capacity improvement that the specified business operator, etc. carries out jointly with that association, federation, company or corporation; where a specified business operator, etc. intends to establish a company or corporation by merger, a plan concerning management capacity improvement carried out by the company or corporation established by the merger (including the company or corporation surviving after the merger); and, where a specified business operator, etc. intends to carry out management capacity improvement jointly with all or part of its foreign affiliated corporation, etc., a plan concerning management capacity improvement that the specified business operator, etc. carries out jointly with that foreign affiliated corporation, etc.; hereinafter referred to as a "management capacity improvement plan"), submit it to the competent minister as provided by order of the competent ministry, and obtain certification to the effect that the management capacity improvement plan is appropriate; provided, however, that where specified business operators, etc. have prepared a management capacity improvement plan jointly, they are to designate a representative and submit it to the competent minister, as provided by order of the competent ministry.

②A management capacity improvement plan must state the following matters:

③"Management capacity improvement equipment, etc." in item (v) of the preceding paragraph means facilities, equipment, machinery, apparatus or programs that are used for the production or sale of goods or the provision of services and that are specified by Order of the Ministry of Economy, Trade and Industry as particularly contributing to management capacity improvement.

④A management capacity improvement plan may state the following matters as the matters listed in paragraph (2), item (iii):

⑤A management capacity improvement plan may state, as the matters listed in paragraph (2), item (iv), that the specified business operator is a person that meets the requirements specified by Order of the Ministry of Economy, Trade and Industry, such as that the amount of its net assets is a certain amount or more.

⑥When an application for the certification under paragraph (1) is filed, the competent minister is to grant the certification if the competent minister finds that the management capacity improvement plan pertaining to the application conforms to all of the following items:

⑦Where the status of a transferring specified business operator, etc. based on a specified permission, etc. prescribed in paragraph (4), item (i) is stated in a management capacity improvement plan, the competent minister, when intending to grant the certification under paragraph (1), is to consult with the administrative agency that granted that specified permission, etc. and obtain its consent.

⑧The administrative agency may request the provision of information necessary for the consent under the preceding paragraph from the competent minister and the person that applied for the certification under paragraph (1).

⑨The administrative agency is to determine whether to give the consent under paragraph (7), taking into consideration the purport of the provisions that form the basis for granting that specified permission, etc.

⑩In addition to what is provided for in the preceding three paragraphs, matters necessary for the consent under paragraph (7) are specified by Cabinet Order.

①A specified business operator, etc. that has obtained the certification under paragraph (1) of the preceding Article, when it intends to change the management capacity improvement plan pertaining to that certification, must obtain the certification of the competent minister that granted the certification, as provided by order of the competent ministry.

②When the competent minister finds that a business pertaining to management capacity improvement (including, where the certified management capacity improvement plan states the matters listed in paragraph (4), item (ii) of the preceding Article, the prior investigation for business succession, etc.) is not being carried out in accordance with the management capacity improvement plan pertaining to the certification under paragraph (1) of the preceding Article (where certification of a change has been given under the provisions of the preceding paragraph, the plan as changed; hereinafter referred to as the "certified management capacity improvement plan"), the competent minister may rescind that certification.

③Where, before business succession, etc. is carried out in accordance with a certified management capacity improvement plan, an application for certification of a change is filed under the provisions of paragraph (1) and the change falls under any of the following items, the competent minister, when intending to grant the certification under that paragraph, is to consult with the administrative agency specified in the relevant item and obtain its consent:

④The provisions of paragraph (6) of the preceding Article apply mutatis mutandis to the certification under paragraph (1), and the provisions of paragraphs (8) through (10) of that Article apply mutatis mutandis to the consent under the preceding paragraph, respectively.

When the competent minister finds it necessary for the enforcement of the provisions of the preceding two Articles, the competent minister may request a certified business-field management capacity improvement promotion body prescribed in Article 39, paragraph (2) to submit materials and provide other necessary cooperation.

①An investment limited partnership that intends to carry out business restructuring investment may prepare a plan concerning business restructuring investment (hereinafter referred to as a "business restructuring investment plan" in this Article and the following Article), submit it to the Minister of Economy, Trade and Industry as provided by Order of the Ministry of Economy, Trade and Industry, and obtain certification to the effect that the business restructuring investment plan is appropriate.

②A business restructuring investment plan must state the following matters:

③Where an application for the certification under paragraph (1) is filed, the Minister of Economy, Trade and Industry is to grant the certification if the minister finds that the business restructuring investment plan pertaining to the application conforms to all of the following items.

①An investment limited partnership that has obtained the certification under paragraph (1) of the preceding Article (hereinafter referred to as a "certified business restructuring investment partnership") must, when intending to change the business restructuring investment plan pertaining to that certification, obtain certification from the Minister of Economy, Trade and Industry in accordance with Order of the Ministry of Economy, Trade and Industry.

②If the Minister of Economy, Trade and Industry finds that business restructuring investment is not being carried out in accordance with the business restructuring investment plan pertaining to the certification under paragraph (1) of the preceding Article (where certification of a change has been granted under the preceding paragraph, the plan as changed; hereinafter referred to as a "certified business restructuring investment plan"), the minister may rescind that certification.

③The provisions of paragraph (3) of the preceding Article apply mutatis mutandis to the certification under paragraph (1).

①With regard to a specified business operator (limited to a person listed in Article 2, paragraph (5), items (i) through (iv), and excluding one that falls under a small and medium-sized enterprise prescribed in Article 2, paragraph (1) of the Small and Medium-sized Enterprise Credit Insurance Act) that carries out an approved management innovation project (meaning a project for management innovation carried out in accordance with an approved management innovation plan; the same applies hereinafter) or a certified management capacity improvement project (meaning a project pertaining to management capacity improvement carried out in accordance with a certified management capacity improvement plan (including, where the matters listed in Article 17, paragraph (4), item (ii) are stated in that certified management capacity improvement plan, a prior investigation for business succession, etc.); the same applies hereinafter in this paragraph, Article 25, paragraph (1) and Chapter VI), that carries out the specified business prescribed in Article 2, paragraph (1), item (i) of the Small and Medium-sized Enterprise Credit Insurance Act, and that has received a management innovation-related guarantee (meaning a guarantee of obligations prescribed in Article 3, paragraph (1), Article 3-2, paragraph (1) or Article 3-3, paragraph (1) of that Act that pertains to funds necessary for an approved management innovation project; the same applies hereinafter in this Article) or a management capacity improvement-related guarantee (meaning a guarantee of obligations prescribed in Article 3, paragraph (1), Article 3-2, paragraph (1) or Article 3-3, paragraph (1) of that Act that pertains to funds, among those necessary for a certified management capacity improvement project, specified by Order of the Ministry of Economy, Trade and Industry as contributing particularly to management capacity improvement; the same applies hereinafter in this Article), the provisions of Articles 3 through 3-3, Article 3-7, Article 3-8 and Articles 4 through 8 of that Act apply by deeming the specified business operator to be a small and medium-sized enterprise prescribed in Article 2, paragraph (1) of that Act. In this case, the term "borrowing" in Articles 3 through 3-3, Article 3-7 and Article 3-8 of that Act is deemed to be replaced with "borrowing of funds necessary for carrying out an approved management innovation project or a certified management capacity improvement project prescribed in Article 22, paragraph (1) of the Act on Strengthening the Management of Small and Medium-Sized Enterprises, etc.".

③With regard to the application of Article 3-7, paragraphs (1) and (2) of the Small and Medium-sized Enterprise Credit Insurance Act (including where they apply pursuant to paragraph (1); the same applies in paragraph (7)) to an insurance relation of overseas investment insurance that pertains to a specified business operator that has received a management innovation-related guarantee, the phrase "200 million yen" in paragraph (1) of that Article is deemed to be replaced with "300 million yen (200 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than funds necessary for an approved management innovation project prescribed in Article 22, paragraph (1) of the Act on Strengthening the Management of Small and Medium-Sized Enterprises, etc. (hereinafter referred to as "management innovation project funds"))", the phrase "400 million yen" is deemed to be replaced with "600 million yen (400 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than management innovation project funds)", and the phrase "200 million yen" in paragraph (2) of that Article is deemed to be replaced with "300 million yen (200 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than management innovation project funds)".

④With regard to the application of Article 3-8, paragraphs (1) and (2) of the Small and Medium-sized Enterprise Credit Insurance Act (including where they apply pursuant to paragraph (1); the same applies in paragraph (8)) to an insurance relation of new business development insurance that pertains to a specified business operator that has received a management innovation-related guarantee, the phrase "200 million yen" in paragraph (1) of that Article is deemed to be replaced with "300 million yen (200 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than funds necessary for an approved management innovation project prescribed in Article 22, paragraph (1) of the Act on Strengthening the Management of Small and Medium-Sized Enterprises, etc. (hereinafter referred to as "management innovation project funds"))", the phrase "400 million yen" is deemed to be replaced with "600 million yen (400 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than management innovation project funds)", and the phrase "200 million yen" in paragraph (2) of that Article is deemed to be replaced with "300 million yen (200 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than management innovation project funds)".

⑦With regard to the application of Article 3-7, paragraphs (1) and (2) of the Small and Medium-sized Enterprise Credit Insurance Act to an insurance relation of overseas investment insurance that pertains to a specified business operator that has received a management capacity improvement-related guarantee, the phrase "200 million yen" in paragraph (1) of that Article is deemed to be replaced with "300 million yen (200 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than funds necessary for a certified management capacity improvement project prescribed in Article 22, paragraph (1) of the Act on Strengthening the Management of Small and Medium-Sized Enterprises, etc. (hereinafter referred to as "management capacity improvement project funds"))", the phrase "400 million yen" is deemed to be replaced with "600 million yen (400 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than management capacity improvement project funds)", and the phrase "200 million yen" in paragraph (2) of that Article is deemed to be replaced with "300 million yen (200 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than management capacity improvement project funds)".

⑧With regard to the application of Article 3-8, paragraphs (1) and (2) of the Small and Medium-sized Enterprise Credit Insurance Act to an insurance relation of new business development insurance that pertains to a specified business operator that has received a management capacity improvement-related guarantee, the phrase "200 million yen" in paragraph (1) of that Article is deemed to be replaced with "300 million yen (200 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than funds necessary for a certified management capacity improvement project prescribed in Article 22, paragraph (1) of the Act on Strengthening the Management of Small and Medium-Sized Enterprises, etc. (hereinafter referred to as "management capacity improvement project funds"))", the phrase "400 million yen" is deemed to be replaced with "600 million yen (400 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than management capacity improvement project funds)", and the phrase "200 million yen" in paragraph (2) of that Article is deemed to be replaced with "300 million yen (200 million yen for an insurance relation pertaining to a guarantee of obligations related to funds other than management capacity improvement project funds)".

⑨With regard to the application of Article 3, paragraph (2) and Article 5 of the Small and Medium-sized Enterprise Credit Insurance Act (including where they apply pursuant to paragraph (1)) to an insurance relation of ordinary insurance that pertains to a management innovation-related guarantee or a management capacity improvement-related guarantee, the phrase "70 percent" in Article 3, paragraph (2) of that Act, and the phrase "70 percent (80 percent in the case of unsecured insurance, special small-amount insurance, current asset collateral insurance, pollution prevention insurance, energy measures insurance, overseas investment insurance, new business development insurance, business revitalization insurance and specified bond insurance)" in Article 5 of that Act, are deemed to be replaced with "80 percent".

⑩The amount of the premium for an insurance relation of ordinary insurance, unsecured insurance or special small-amount insurance that pertains to a management innovation-related guarantee or a management capacity improvement-related guarantee is, notwithstanding Article 4 of the Small and Medium-sized Enterprise Credit Insurance Act, the amount obtained by multiplying the insured amount by the rate specified by Cabinet Order within 2 percent per year.

①A Small and Medium Business Investment and Consultation Company may, in addition to the business listed in the items of Article 5, paragraph (1) of the Small and Medium-sized Enterprise Investment Business Corporation Act, conduct the following business.

②The businesses listed in the items of the preceding paragraph are deemed to be the businesses referred to in Article 5, paragraph (1), items (i) and (ii) of the Small and Medium-sized Enterprise Investment Business Corporation Act for the purpose of the application of that Act.

①The Japan Finance Corporation may, in addition to the business prescribed in Article 11 of the Japan Finance Corporation Act (Act No. 57 of 2007), conduct the following business.

②The business of lending funds to a foreign affiliated corporation, etc. under items (i) and (ii) of the preceding paragraph is, for the purposes of the application of the Japan Finance Corporation Act, deemed to be business under Article 11, paragraph (1), item (i) of that Act of lending the funds listed in the right-hand column of Appended Table 1, item (xiv) of that Act to the persons listed in the middle column of Appended Table 1, item (xiv) of that Act.

③A guarantee of obligations under paragraph (1), items (iii) and (iv) is, for the purposes of the application of the Japan Finance Corporation Act, deemed to be business listed in the right-hand column of Appended Table 2, item (iv) of that Act under Article 11, paragraph (1), item (ii) of that Act.

④In addition to the business prescribed in Article 11 of the Japan Finance Corporation Act or Article 19 of the Okinawa Development Finance Corporation Act (Act No. 31 of 1972), the Japan Finance Corporation or the Okinawa Development Finance Corporation may conduct the business of lending long-term funds that a specified business operator needs in order to carry out an approved management innovation project or a certified management capacity improvement project, to a specified business operator that carries out that project (limited to a person listed in Article 2, paragraph (5), items (i) through (iv), and excluding one that falls under a small and medium-sized enterprise prescribed in Article 2, item (iii) of the Japan Finance Corporation Act) and that carries on the specified small and medium-sized enterprise business prescribed in item (iii), (a) of that Article.

⑤The business of lending funds to a specified business operator under the preceding paragraph is, for the purposes of the application of the Japan Finance Corporation Act or the Okinawa Development Finance Corporation Act, deemed to be, respectively, business under Article 11, paragraph (1), item (i) of the Japan Finance Corporation Act of lending the funds listed in the right-hand column of Appended Table 1, item (xiv) of that Act to the persons listed in the middle column of Appended Table 1, item (xiv) of that Act, or business under Article 19, paragraph (1), item (v) of the Okinawa Development Finance Corporation Act.

①The Organization for Small and Medium Enterprises and Regional Innovation, JAPAN, in order to promote management capacity improvement, conducts the business of guaranteeing obligations pertaining to borrowings of funds that a specified business operator, etc. (limited to a person listed in Article 2, paragraph (6), item (ii); the same applies hereinafter in this Article) requires in order to carry out a certified management capacity improvement project, and of guaranteeing obligations pertaining to corporate bonds issued by a specified business operator, etc. (limited to a company) in order to raise those funds.

②The Organization for Small and Medium Enterprises and Regional Innovation, JAPAN, in order to facilitate business restructuring investment, conducts the business of guaranteeing obligations pertaining to borrowings of funds that a certified business restructuring investment partnership requires in order to carry out business restructuring investment in accordance with a certified business restructuring investment plan.

①The Organization for Promoting Sustainable Supply of Food, etc. designated pursuant to Article 22, paragraph (1) of the Act on the Promotion of Business Activities by Food, etc. Business Operators and Ensuring Proper Transactions of Food, etc. for Realizing a Sustainable Supply of Food, etc. (Act No. 59 of 1991) may conduct the following services in addition to the services listed in the items of Article 23 of that Act:

①Where a certified management capacity improvement plan (limited to one that states matters concerning business succession, etc.) states the status of a transferring specified business operator, etc. based on a specified permission, etc. under Article 17, paragraph (4), item (i), and business succession, etc. is carried out in accordance with that certified management capacity improvement plan, the succeeding specified business operator, etc. succeeds to the status of the transferring specified business operator, etc. based on that specified permission, etc., notwithstanding the provisions of the laws and regulations that form the basis for that specified permission, etc.

②When a succeeding specified business operator, etc. has carried out business succession, etc. in accordance with that certified management capacity improvement plan, it must, without delay, report to that effect to the competent minister, attaching a document certifying that fact.

③Where a succeeding specified business operator, etc. has succeeded to the status of a transferring specified business operator, etc. based on a specified permission, etc. pursuant to paragraph (1) and the competent minister has received the report under the preceding paragraph, the competent minister is to notify the administrative agency pertaining to that specified permission, etc. of the matters pertaining to that report, as provided by order of the competent ministry.

④In addition to what is provided for in this Act, matters necessary for the succession to a status based on a specified permission, etc. are specified by Cabinet Order.

Where a specified business operator, in accordance with a certified management capacity improvement plan (limited to one that states matters concerning business succession, etc. (limited to those pertaining to the measure listed in Article 2, paragraph (10), item (ix))), establishes the business cooperative, enterprise association and cooperative partnership pertaining to that certification by the day on which two months have elapsed from the date of that certification, with regard to the application of Article 24, paragraph (1) of the Small and Medium-Sized Enterprise Cooperatives Act (Act No. 181 of 1949) and Article 5-15, paragraph (1) of the Act on the Organization of Small and Medium-sized Enterprise Association (Act No. 185 of 1957), the term "four or more persons" in these provisions is deemed to be replaced with "three or more persons".

①A transferring specified business operator, etc. stated in a certified management capacity improvement plan (limited to one that states matters concerning business succession, etc. (limited to those pertaining to the acquisition of a business among the measures listed in Article 2, paragraph (10), item (vii))) that is a stock company (hereinafter referred to as a "transferring company" in this paragraph and paragraph (4)) may, when a resolution of a shareholders meeting or board of directors, or a decision of an executive officer, has been made on the transfer of all or part of its business carried out in accordance with that certified management capacity improvement plan, within two weeks from the date of that resolution or decision, give notice separately to each specified creditor (meaning, among persons that hold claims against that transferring company, a person that, upon the transfer of all or part of that business, comes to hold a claim against the person acquiring all or part of that business and ceases to hold that claim against that transferring company; the same applies in paragraphs (3) and (4)) of the outline of the transfer of all or part of that business, and demand that, if they have any objection to the transfer of all or part of that business, they state it within a certain period.

②The period under the preceding paragraph must not be less than one month.

③Where a specified creditor that has received the demand prescribed in paragraph (1) has not stated an objection within the period referred to in that paragraph, that specified creditor is deemed to have approved the transfer of all or part of that business.

④Where a specified creditor has stated an objection within the period referred to in paragraph (1), the transferring company must make payment, provide reasonable security, or entrust reasonable property to a trust company or a financial institution engaged in trust business for the purpose of having the specified creditor receive payment; provided, however, that this does not apply where there is no risk of harming that specified creditor even if all or part of that business is transferred.

①The Organization for Small and Medium Enterprises and Regional Innovation, JAPAN, at the request of a specified business operator that carries out an approved management innovation project or a certified management capacity improvement project (excluding one that falls under a small and medium-sized enterprise prescribed in Article 2, paragraph (1) of the Act on the Organization for Small & Medium Enterprises and Regional Innovation, Japan, Independent Administrative Agency (Act No. 147 of 2002)), gives necessary advice on the implementation of that approved management innovation project or certified management capacity improvement project.

②The Organization for Small and Medium Enterprises and Regional Innovation, JAPAN, at the request of a financial institution (meaning a financial institution prescribed in Article 3, paragraph (1) of the Small and Medium-sized Enterprise Credit Insurance Act) that intends to lend funds to a specified business operator that intends to receive a special management capacity improvement-related guarantee, conducts the business of the provision of information relating to that guarantee and other necessary cooperation.

①The competent minister may, as provided by order of the competent ministry, certify, upon application, a person that conducts the work prescribed in the following paragraph (hereinafter referred to as "support work for management innovation, etc.") and that is found to conform to the basic policy, as a person that conducts support work for management innovation, etc.

②A person that has obtained the certification under the preceding paragraph (hereinafter referred to as a "certified support body for management innovation, etc.") is to conduct the following work:

③A person who seeks to obtain the certification referred to in paragraph (1) must submit to the competent minister a written application stating the following matters, as specified by order of the competent ministry.

④A certified support body for management innovation, etc. must notify the competent minister to that effect without delay when there is a change in the matters set out in items (i) and (ii) of the preceding paragraph, and in advance when it intends to make a change in the matters set out in item (iii), (a) through (c) of that paragraph (excluding minor changes specified by order of the competent ministry).

A person that falls under any of the following items may not obtain the certification referred to in paragraph (1) of the preceding Article:

①The certification referred to in Article 31, paragraph (1) ceases to be effective upon the expiration of the period unless it is renewed every five years.

②The provisions of Article 31, paragraphs (1) and (3) and the preceding Article apply mutatis mutandis to the renewal of the certification referred to in the preceding paragraph.

A certified support body for management innovation, etc. that intends to discontinue the work related to its certification must notify the competent minister to that effect in advance, as specified by order of the competent ministry.

If the competent minister finds, in light of the basic policy, that an improvement is necessary regarding the operation of the support work for management innovation, etc. of a certified support body for management innovation, etc., the competent minister may order that certified support body for management innovation, etc. to take the measures necessary for the improvement.

The competent minister may rescind the certification of a certified support body for management innovation, etc. if it falls under any of the following items:

With respect to a general incorporated association (limited to one in which small and medium-sized enterprises hold one-half or more of the voting rights at its general meeting of members), a general incorporated foundation (limited to one for which one-half or more of the value of the property contributed at its establishment was contributed by small and medium-sized enterprises) or a specified non-profit corporation prescribed in Article 2, paragraph (2) of the Act on Promotion of Specified Non-profit Activities (Act No. 7 of 1998) (limited to one in which small and medium-sized enterprises hold one-half or more of the voting rights at its general meeting of members, and excluding one that falls under Article 2, paragraph (1), item (vi) of the Small and Medium-sized Enterprise Credit Insurance Act), in each case one that has received certification under the provisions of Article 31, paragraph (1) and that has received a guarantee of obligations prescribed in Article 3, paragraph (1) or Article 3-2, paragraph (1) of the Small and Medium-sized Enterprise Credit Insurance Act concerning funds necessary for the implementation of support work for management innovation, etc. (hereinafter in this Article referred to as a "certified general incorporated association, etc."), the provisions of Articles 3 and 3-2 and Articles 4 through 8 of that Act apply by deeming the certified general incorporated association, etc. to be a small and medium-sized enterprise under Article 2, paragraph (1) of that Act. In this case, the term "borrowing" in these provisions is deemed to be replaced with "borrowing of funds necessary for the implementation of support work for management innovation, etc. prescribed in Article 31, paragraph (1) of the Act on Strengthening the Management of Small and Medium-Sized Enterprises, etc. conducted by a certified general incorporated association, etc. prescribed in Article 37 of that Act".

In response to a request from a certified support body for management innovation, etc., the Organization for Small and Medium Enterprises and Regional Innovation, JAPAN is to carry out work of cooperation necessary for the implementation of support work for management innovation, etc., such as the dispatch of experts.

①The competent minister may, as specified by order of the competent ministry, certify, upon application and for each business field, a person that carries out the work prescribed in the following paragraph (hereinafter referred to as "business-field management capacity improvement promotion work") in a business field for which business-field guidelines have been established, and that is found to conform to the business-field guidelines, as a person that carries out business-field management capacity improvement promotion work.

②A person that has received the certification referred to in the preceding paragraph (hereinafter referred to as a "certified business-field management capacity improvement promotion body") is to carry out the following work:

③A person who seeks to obtain the certification referred to in paragraph (1) must submit to the competent minister a written application stating the following matters, as specified by order of the competent ministry.

④A certified business-field management capacity improvement promotion body must notify the competent minister to that effect without delay when there is a change in the matters set out in items (i) and (ii) of the preceding paragraph, and in advance when it intends to make a change in the matters set out in item (iii), (a) through (c) of that paragraph (excluding minor changes specified by order of the competent ministry).

In response to a request from a certified business-field management capacity improvement promotion body, the Organization for Small and Medium Enterprises and Regional Innovation, JAPAN is to carry out work of cooperation necessary for the implementation of business-field management capacity improvement promotion work, such as the dispatch of experts.

In order to develop and improve the abilities of workers employed by specified business operators, etc. that intend to carry out management capacity improvement, the government may provide necessary subsidies and assistance, as a capacity development project under Article 63 of the Employment Insurance Act (Act No. 116 of 1974), to a certified business-field management capacity improvement promotion body (limited to the case where it carries out, among the work set out in Article 39, paragraph (2), item (i), the work relating to the improvement of workers' knowledge and skills).

The provisions of Articles 32 through 36 apply mutatis mutandis to a certified business-field management capacity improvement promotion body. In this case, the phrase "support work for management innovation, etc." in Article 32, item (iii) and Article 35 is deemed to be replaced with "business-field management capacity improvement promotion work", and the phrase "basic policy" in that Article is deemed to be replaced with "business-field guidelines".